At a glance
What Illinois requires
Illinois permits fixed indemnity as a supplemental, limited-benefit product, but it layers specific requirements on these plans. A hospital confinement indemnity plan must pay at least $30 per day for at least 31 days (50 Ill. Adm. Code 2007.70(b)(4)), and Illinois defines the benefit as a "fixed dollar amount per day... regardless of the amount of expenses incurred" (2001.2). The Illinois Department of Insurance (IDOI) administers these rules.
Illinois also requires the federal fixed-indemnity consumer disclosure. Under IDOI Company Bulletin 2024-15 (Aug. 7, 2024), issuers must file the federal Tri-Agency disclosure for hospital or other fixed indemnity issued, amended, or renewed on or after Jan. 1, 2025. This is a point to note carefully: at the federal level, the 2024 fixed-indemnity consumer-notice requirement was vacated by a court in December 2024, so it is not federally required (an earlier 2014 individual-market notice still applies) — but Illinois has adopted and continues to enforce the disclosure at the state level through Bulletin 2024-15.
The core thing to understand is how it pays: fixed indemnity pays a predetermined cash amount when a covered event happens — no matter what your treatment actually costs. That's very different from major medical, which pays a share of your actual bills.
How fixed indemnity works in Illinois
Fixed indemnity and related excepted benefits come in a few forms (described as coverage types, not specific products):
Each pays a fixed cash benefit you can use toward bills, deductibles, or everyday costs during a covered event. Illinois-issued fixed indemnity comes with the federal Tri-Agency consumer disclosure the state requires, which explains that the coverage is supplemental — read it closely. As an independent, carrier-neutral brokerage, we don't push any single insurer — and we'll be clear that fixed indemnity works best alongside a comprehensive plan, not instead of one.
How to get coverage here
Fixed indemnity isn't sold through the health insurance marketplace, and it isn't tied to Open Enrollment — you can generally apply for it year-round, directly from an insurer or through a broker, subject to the product's terms and Illinois's requirements.
For the comprehensive coverage that fixed indemnity is meant to supplement, Illinois runs its own state-based exchange, Get Covered Illinois, where ACA plans have an annual Open Enrollment (typically each fall through early winter) and Special Enrollment Periods for qualifying life events like losing job-based coverage, moving, or having a baby. Illinois has expanded Medicaid, so it's worth checking your eligibility there as well.
What it costs
We don't quote premiums here — prices depend on your situation — but the cost of fixed indemnity in Illinois is driven by:
Because fixed indemnity pays fixed amounts rather than a share of your bills, use the plan documents and the required federal disclosure to compare exactly what a plan pays — and remember it's supplemental, so weigh it alongside the cost of the comprehensive coverage it's meant to support.
Fixed indemnity insurance is a supplemental, limited-benefit (excepted-benefit) product. It pays fixed cash amounts for covered events regardless of your actual medical costs, is not major medical coverage, and is not minimum essential coverage under the Affordable Care Act. It does not cover the full range of essential health benefits and is not a substitute for a comprehensive health plan.
GetHealthPlans.com is operated by MTG Insurance Agency, an independent, carrier-neutral brokerage. We do not issue insurance and are not a government agency or the health insurance marketplace. Regulatory details on this page reflect Illinois law and Illinois Department of Insurance guidance as of the last-reviewed date and can change; confirm current terms and the specific product's approved form before you enroll.